Does the current reporting framework meet the needs of the 21st century?

Marion Hannon, partner, assurance & business advisory services, PricewaterhouseCoopers, argues it''s time to change the historic and outdated reporting framework.

Let's face it, the current historic reporting framework used by companies, is by itself, inadequate for investors and other stakeholders to understand a companys true value. Whilst the historic reporting framework still has a place in the financial world by providing reasonable consistency in corporate reporting, it fails to measure the true value of companies. Historical financial indicators do not reflect a companys capacity to grow, adapt and change.

In a knowledge-based economy, a new reporting framework is needed to allow businesses to communicate more effectively on intangibles such as brand reputation, customer retention, intellectual capital, product development pipelines, reliability of deliveries and employee turnover. The current reporting framework based on...

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